Income tax exemption and sporting clubs

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About this guide

This guide is designed for office bearers and advisers of non-profit clubs to use when self-assessing if their club is exempt from income tax as a society, association or club established for the encouragement of a game or sport.

The guide may also be used to determine if a club is a rebatable employer for the purposes of fringe benefits tax.

You should self-assess your club's status each year. You should also do this when there are major changes to your club's structure or activities.

It is also important that you review your club's status as part of your governance processes to ensure your club still meets the requirements for exemption.

You need to remember that income tax exemption is not necessarily permanent. The growth of your club, changes in its constitution, focus and activities can alter the character of your club.

We recognise that many clubs have limited resources to manage their tax affairs and this can affect their ability to fully understand and meet their tax obligations. This guide is designed to make it easier for non-profit sporting organisations to achieve certainty when self-assessing their exemption status.

This guide is not for office bearers or advisers of:

charities

other income tax exempt organisations, including clubs established for the encouragement of animal racing, or

taxable clubs.

Taxable clubs

If your club is not exempt from income tax, it is taxable. Taxable clubs have access to unique concessions. Receipts derived from mutual dealings with members are not assessable income and not subject to tax. They are called mutual receipts. Mutual receipts include:

member subscriptions

drinks sold at the bar to club members

amounts members pay to attend dinners, parties, dances or social functions organised by the organisation, and

amounts members pay to attend a workshop or presentation organised by the club.

If your club is taxable, is a non-profit company and has a taxable income of $416 or less, no tax is payable and it is not required to lodge a tax return.

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.